Target customer profiling helps your franchisees replicate your success
When designing your franchise territories, you want to replicate the same conditions that drive the success of your own business. Particularly important to get right is the type and number of potential target customers in each territory. There needs to be sufficient for your franchisees to sustain a profitable business over the long term but not too many to service. This would make it easier for competitors to gain traction.
Tech4T deliver accurate target customer profiles to help solve this problem. We identify:
- the different types of people or businesses who buy your products
- the size of your target market
- your share of it in your own trading area or in sold territories (market penetration)
If you are working flat out and target customer profiling identifies still more customers you could be servicing, this would suggest a franchisee does not need a territory as big as your own trading area.
Use customer profiling to target your marketing effectively
Tech4T use leading demographic classifications to profile the types of customers making up your target market. We combine information unique to your company – how much and how often customers spend with you, what they’re buying, how profitable they are and how loyal they are – with external data such as income, occupation, level of education, age, gender, hobbies, or area of residence. For business customers, profiles may include turnover, size (number of employees) and industry sector.
Customer segments – it would be beneficial to focus on attracting more higher value Segment 1 type customers
Your customers are divided into groups (segments) meaningful to your business – target customers could include high-income singles, senior citizens, cost conscious working parents, small businesses …
This enables you to significantly improve your targeting with more relevant marketing messages to different types of customer; the chances of response and take-up of your offer are increased. Your marketing budget is only being spent on the types of people known to buy from you.
Value your territories
Target Customer profiling will also help you calculate the value of your territories. You will know the size of the target market in each and the potential income to be achieved. You will be able to negotiate and sell territories with confidence, knowing your valuation methodology is sound and explainable.
Show your franchisees where to find their customers
Heat mapping shows the concentration of your target market. This territory extract depicts population counts by Postcode Sector
Customer profiling results can be overlaid on your territory maps in the form of graduated thematic shading (heat maps). Red or orange denotes the highest concentrations of target customers through to blue indicating low quantities.
Providing franchisees with this type of information means they can see at a glance where to focus sales and marketing activity for the greatest return.
Demographic and business statistics ensure each franchise territory contains the right number of target customers. For example, providers of domiciliary care need the ideal number of over 65’s, whilst a commercial cleaning company is more concerned with the number of target businesses.
Tech4T hold a wealth of demographic data, ranging from house tenure and central heating type to age and occupation. We hold this information at varying levels of Postal geography. We also work with other specialist and B2B data providers so that we are able to match all franchise requirements.
Contact Tech4T to understand how you can develop different offers to suit specific groups of customers, understand where best to find new customers and support your franchisees with detailed marketing and sales information.